Pa. House passes bill to reform funding program - abc27 WHTM

Pa. House passes bill to reform funding program

The Pennsylvania House of Representatives has approved legislation to limit the borrowing of money for projects such as sports stadiums and libraries named for former politicians.

House Bill 493 was approved by a vote of 194-2.

The legislation would put in place new controls to curtail projects funded by the Redevelopment Assistance Capital Program, which uses borrowed money to fund economic development projects selected by the governor.

House Majority Leader Mike Turzai said RACP had a debt ceiling of $1.2 billion when it was created in 1999, but the debt ceiling has been raised six times since then, pushing it up to $4.05 billion. About 8,000 projects have been added to the program's list since it began.

The legislation would reduce the debt ceiling to $3.5 billion, create a stringent review and approval process, and redefine the program to finance buildings and related projects.

Eligible projects would be required to have a total cost of $1 million or more, provide a substantial regional economic impact, and have at least 50 percent non-state funding participation.